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Bank of Spain warns stressed assets remain above pre-crisis levels

Distressed assets in Spanish banks have declined sharply over the past five years but they remain above pre-crisis levels, the Bank of Spain says in its annual report on banking supervision.

The central bank acknowledges banks’ balance sheets are better capitalised, and the level of toxic assets has substantially fallen since 2012–13. “However, its level is still high, above that observed before the crisis,” says governor Pablo Hernández de Cos.